Address the importance of managing pay equity (both internal and external) and the consequences for not doing so.
Also address the role of pay equity and employee job satisfaction and motivation from a strategic perspective.
Pay equity is not just a matter of fairness. It can help an organization gain a competitive edge in its specific industry. Externally, every industry within a region has an established pay range for specific job titles. If an organization is not willing to meet those expectations, it greatly narrows its pool of potential workers, which makes gaining a competitive edge difficult. The organization will have a hard time finding entry level college graduates, for example, if competitors pay an hourly wage that is a dollar an hour more or two thousand more in an annual salary. For those ...
The solution provides an explanation of the importance of pay equity, as a means for attracting and retaining high quality workers. The explanation discusses pay equity by gender and also pay equity within industries. Firms that meet the needs of employees in this area can reduce turnover rates and maintain a competitive edge in the industry in which they operate.